SAS AB (Gorm Warm Red Limited)

SAS AB is on a reorganization path built around a Second Amended Chapter 11 plan, with the current restructuring framework centered on new-money investment, claim classification, contract treatment, and regulatory approvals rather than a sale or liquidation. The case began on July 5, 2022, when SAS AB commenced Chapter 11 in the Southern District of New York through the Chapter 11 Voluntary PetitionDkt. 1, alongside first-day declarations describing a Scandinavian airline group operating a 113-destination network across 34 countries, with roughly 4,800 employees and a multi-jurisdictional corporate and cash-management structure.

The filing was driven by the need to stabilize a capital- and vendor-intensive airline business while continuing operations. The first-day record emphasized large near-term operating obligations, including employee compensation and benefits, essential-vendor exposure, fuel costs exceeding $100 million per month during peak summer 2022, and roughly 300 bank accounts across 15 countries; the debtors sought authority to preserve cash management, employee programs, customer programs, and critical commercial relationships through the Healy First Day DeclarationDkt. 4. The capital structure included unsecured term loans, commercial hybrid bonds, state hybrid bonds, and Swiss bonds, as described in the Hilden Rule 1007-2 DeclarationDkt. 3.

The case has since moved into a plan-driven restructuring. The Second Amended Joint Chapter 11 PlanDkt. 1904 proposes a $1.2 billion investment package consisting of $475 million in new shares and $725 million in new convertible notes, with Castlelake, the Danish State Investor, Air France-KLM, and Lind Invest identified as key investors. The plan also provides for substantive consolidation of the consolidated debtors for voting and distribution purposes, a $250 million GUC cash pool, special treatment for aircraft leases, and deemed rejection of executory contracts and unexpired leases unless specifically assumed.